NIM01203 - Class 1 structural overview from April 2009: the Lower Earnings Limit (‘LEL’)

Section 5 of the Social Security Contributions and Benefits Act 1992 (SSCBA 1992)

Regulations 10 & 11 of the Social Security Contributions Regulations 2001 ( SI 2001 No 1004)

Section 7 of the Pensions Act 2007

The Lower Earnings Limit (LEL) is the point at which employees start to build up entitlement to contributory benefits. The LEL is fixed each year at a weekly rate see NIM01005.

With effect from 6 April 2011, the LEL is no longer fixed by reference to the rate of Basic State Retirement Pension, Instead the power to amend the value of the LEL is a matter for HM Treasury. For guidance on how to calculate the LEL for pay intervals other than a week, see NIM01010.

For further guidance on NIC limits, see NIM11000 onwards.